TMI Blog2007 (10) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... livered by K. L. MANJUNATH J.—1. The Revenue has filed this appeal challenging the order passed by the Income-tax Appellate Tribunal, Bangalore Bench, in I. T. A. No. 748/Bang/195, dated June 29, 2001, wherein the Tribunal has confirmed the orders of the Commissioner of Income-tax (Appeals-II), Bangalore, dated March 31, 1995, in Appeal No. I. T. A. 16/Dcar-5/cit (a)-ii /93-94. The Deputy Commissioner of Income-tax (Assessments), Special Range-V. Bangalore, issued a show-cause notice to the assessee under sec ion 274 read with section 271 of the Income-tax Act, 1961 calling upon the assessee why penalty to the assessee should not be levied under section 271(1) (c) of the Income-tax Act. Though notice was served, the assessee did not sen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missed on June 29, 2001, confirming the orders of the appellate authority. Being aggrieved by these two orders, the present appeal is filed raising the following substantial question of law "Whether the appellate authorities were correct in arriving at a conclusion that penalty under section 271 (1) (c) of the Act cannot be levied despite the assessee fails to furnish any information in accordance with the provisions to discharge the burden placed on him ?" 3. We have heard counsel for the parties. After hearing counsel for both the parties, we are of the opinion that though initial burden was on the Department, ultimately it has to be discharged by the assessee by showing the cause that the Revenue cannot levy penalty under section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs then and there only. Having failed to show cause, the Deputy Commissioner was left with no other option than to levy penalty. 5. In the circumstances, we are of the opinion that the appeal has to be allowed and the order passed by the Commissioner of Income-tax (Appeals) and the order passed by the Income-tax Appellate Tribunal are required to be set aside and in view of the findings of both the authorities, the matter has to be reconsidered by the Deputy Commissioner of Income-tax by giving reasonable opportunity to the respondent and if the respondent wishes to show cause to the penalty notice received by him in addition to what has been contended by the assessee before the Commissioner of Income-tax (Appeals), he is entitled to f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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